HBSE Class 12 Sample Paper 2026 Answers Entrepreneurship

Marking Scheme
Class– XII
Session-2025-26
Subject – Entrepreneurship
Time- 3Hours M.M.-60

General Instructions-

● The Question paper is divided into parts. There is no overall choice, though the internal
choice is given in selected sections.
● Section A has 15 Objective questions carrying 1 mark each.
● Section B has 6 questions carrying 2 marks each. Answers may be within 50 to 75 words
● Section C has 6 questions carrying 3 marks each answers may be about 100 words
● Section D has 3 questions carrying 5 marks each. Answer may be about 150 words.

Q. Answers Marks
No.

1 (d ) All of the above 1
2 (c) Price Skimming 1
3 (a) Skills, knowledge and competencies 1
4 (b) Capital Market 1
5 (d) promotion 1
6 (b) physical charactertics 1
7 Implied Authority/ Innovation 1
8 Vendor Management 1
9 Economic Factor 1
10 Innovation – Innovation is the application of creative solution to 1
problems or opportunities to enhance or to enrich people’s live. In
simple words, application of new inventions is called innovation.

11 OPC – One person Company means a company with only one person 1
as its member..

12 Venture Capital is defined as money provided by professional who 1
invest alongside management in new young rapidly growing
companies that have the potential to develop into significant
economic contributors.
13 (a) both Assertion (A) and Reason (R) are true and Reason (R) is the 1
correct explanation for Assertion (A).

14 (a) both Assertion (A) and Reason (R) are true. And Reason (R) is 1
the correct explanation for Assertion (A)

A. Product Franchise

B. Manufacturing Franchise
C. Business Franchise

D. Business Format Franchise

20 Inventory Control – Inventory control is a process of deciding what 2
and how much of various items to be kept in stock. The basis objective
of inventory control is to find out idle level of inventory so that there
is no extra inventory and production level, does not suffer due to look
of inventories.

21 Angle Investor – Angel Investor are wealthy investors who invest in 2
entrepreneurial firms, usually during start up. They provide cash to
young investors and take equity in return.

22. Reasons for Making Business Plan :– 3
1) Used for getting finance from banks or equity
funding.
2) Helps the director to make capital investment
decisions.
3) Evaluation of all elements of business.
4) Provide standards
23 Name of Idea fields :– 3
1) Natural Resources
2) Existing product or services
3) Market drive and Demand drive ideas 4)
Trading related ideas
5) Service sector ideas
24 Organizational Plan – Organizational Plan is the plan that gives 3
complete idea the set up of the organization. Organizational plan
includes the following elements:- 1) Forms of Ownership
2) Identifications and complete details about business
associate
3) Administrative structure, level of mgt. etc.
4) Identification of management team

25 Importance of Sales promotion – Sales promotion techniques are very 3
useful because they being :–
1) Short and immediate effect on Sale.
2) Stock clearance is possible with sales promotion

3) Sales promotion techniques help to win over the
competitor
OR
Vendor Management – Vendor management means managing third
party who are supplying various resources including human
resources to organization. Vendor management make sure that third
parties meet the goal of service, quality and cost-optimization.
Few consideration of Vendor Management are :–
i. Establishing goals
ii. Selecting Vendors
iii. Managing Vendors
iv. Consistently meet goals
26 Features of partnership :– 3
i. Formation
ii. Liability
iii. Risk Bearing
iv. Decision Making
v. Continuity
vi. Number of partner vii. Mutual Agency
Relationship

(Explain any 3)

27 Net working Capital – This refers to excess of current assests over
current liabilities.
Example of current assets :- Cash, B/R, Prepaid Expenses,
Inventories etc.
OR
Methods of flotation of securities in Primary Market :–
1) Public issue through prospector (Explain any 03)
2) Offer for sale
3) Private placement
4) Right issue
28 5
Creativity – Creativity is the ability to develop new ideas and to
discover new ways of looking at a problem and opportunities. It refers
to “Thinking new things” or “Doing things differently”

Creativity Process :–
1) Analytical planning
2) Resource organization 3)
Implementation
4) Commercial application (1x 4 = 04 marks) OR
It helps the entrepreneur to frame a formal statement enlisting a set of
business goals, the reasons as to why they believe that it is attainable
and the plan for reaching those goals along with the background
information’s about the organization or/and team.
Attempting to reach those goals. (1 mark)

Formats of Business Plan :–
1) Elevator pitch
2) A pitch deck with oral narrative
3) A written presentation for
external stakeholders.
4) An internal operational plan.

(Explain these points in details) (1
x 4 = 04 marks)

29 Negotiation – Negotiation is nothing but a discussion among 5
individuals to find out or alternative which takes into account benefit
of all and nobody is at loss. Negotiation is essential in corporate to
avoid conflicts and improve relationship.

Methods of Negotiation –
1) Integrative/Distributive Negotiation
2) Inductive/Deductive/Mixed Negotiation
3) Soft/Hard Negotiation
(1 x 3 = 03 marks)
OR
Advantages for Franchises :–
1) Established Brand 2)
Quality product
3) Advertisement
4) Financing
5) Training
6) Technological up gradation
7) Uniform Control system

8) Better Start
(explain these points in details)

30 Stock Exchange :– An organization or body of individual, whether
incorporated or not, established for the purpose of assisting,
regulating and controlling of business in buying, selling and dealing
in securities. (01 marks)
Functions –
1) Economic barometer 2)
Pricing of Securities
3) Safety of transactions
4) Constributes to economic growth
5) Providing scope for specialization
6) Liquidity
7) Better allocation of capital
(explain any 04 point) (1 x 4 = 04 marks) OR
Factors effecting working capital –
1) Length of operating cycle
2) Nature of Business
3) Scale of Operation
4) Business cycle fluctuation 5) Seasonal factors
6) Technology and Production cycle
7) Credit allowed
8) Credit avail
9) Operating efficiency
10) Availability of Raw Material 11) Level of
competition
12) Inflation
13) Growth prospects

(Explain any 10 points) ( 10 x ½ = 05 marks )